10 trends for startups to watch in 2022 and beyond (Trend 5)

Talent, teams, technology

The labour market and our future workforce is a world of contradictions. While companies worldwide are crying out for new talent and skilled workers, they are unable to fill vacant positions, even after unemployment rates skyrocketed during the pandemic. Now, with many people choosing to exit the workforce (the great resignation), absenteeism becoming endemic as millions contract Covid or quarantine, and consumer prices soar along with wages, the labour market in many developed countries is incredibly tight – and the skills required by many employers are simply unavailable. How can we reduce this mismatch between the skills of workers and the talent companies are seeking?

One obvious route would be to tap into the younger, tech savvy generations that are (hopefully) learning the skills of the future during their education. However, youth unemployment globally has been much higher than that of adults (aged 25 and above) for decades. Globally, the situation has worsened during the Covid crisis with youth employment falling by 8.7 per cent in 2020 compared with 3.7 per cent for adults (ILO, June 2021), with young women particularly impacted. Often, younger employees in less secure jobs missed out government income and furlough support. Compared to pre-crisis levels, the share of young people not in employment, education or training (the NEET rate) has risen in many countries to an estimated 22.4% globally in 2020 – and gender inequality is higher, with two-thirds of these 181 million young people being women (ILO, Global Employment Trends for Youth 2020: Technology and the future of jobs). This generation of young workers risks keeping the label “the lost generation” – if urgent action is not taken by businesses and governments to address the challenges.

Another legacy of the pandemic is the mass, worldwide experiment in flexible and remote working. Billions of people were separated physically from their teams – and bosses – and quickly learned to use video conferencing, collaboration tools, and headphones to cut out the noise of roommates, family and other distractions. Still, teams got to know much more about each other’s lives outside work from glimpses into our living rooms, kitchens and even sheds! The human side of leadership became critical as we faced a common, initially unknown entity. Flexibility was essential, as was innovation, collaboration and self-direction. As we negotiate a new landscape of work, these traits will remain hugely important, particularly for younger workers who have grown up in a ‘playlist world’ where they can customize their life and focus on working smarter, not harder.

Finally, we have to think about the skills for the future. Robots, smart machines and computers have already been taking over repetitive and risky tasks for decades. However some experts are questioning whether this move towards automation will lead to a hollowing out of mid-level and even higher skilled jobs, as it has of many low skilled jobs. Further advances in technology, including the internet of things, enhanced humans and quantum computing, means many millions, if not billions, of jobs could be replaced in the next decade – although these advances will themselves create new types of jobs and demand for skills.

While these trends play out, one thing is clear: Job requirements in future are likely to shift towards higher-skilled, flexible workers. Today the demand for highly educated workers is already rising faster than the supply. The question is how we anticipate and adapt to what will be the new realities of 21st century work. This needs to be a critical area of focus for both governments and companies – today!

What does this mean for startups?

• Talent is scarce – start building your team from Day 1 (if not before): The labour market, particularly in developed and middle income countries, is extremely tight. Those skills you told your investors you would be bringing in might not be easily available. So start searching for the right talent as early as possible. Also think innovatively: In the great resignation, many older people with excellent expertise and younger people with passion and desire to learn exited the workforce. Can you recruit some “grey power” to help push your business forward, even for a short time? Can you train some enthusiastic young people who may not have the skills on paper but can learn by doing? And shake your networks to see who can help you recruit.

• Recruit for values – and recognise these: It is much better to hire people who share your values and passion for what your business can achieve in the world, than to hire simply on skills. Passionate people drive successful companies. Also as a founder, be sure to recognise the efforts of your team in both the ups and downs of the startup journey – leadership has become more human and you need to demonstrate this in your actions as well as words. The feedback culture (anonymous and non-anonymous) has taken off so consider your approach (note: Firing hundreds of people over zoom is not recommended).

• Flexible working is here to stay: Ask yourself if you really do need physical premises at the outset. Yes, your team does need some face to face time to bond effectively, but do you need this daily? Premises cost money – is it better to rent flexible space and use the money to hire the best team? Think about investing too in the best collaboration tools you can so your team can be seamlessly connected and work smart as you navigate the new world of work. And be sure to let your team have a say in how you work together effectively.

• Cultivate networks: Your personal network is where you might find your first team members. But think broader. For example, are there academic or vocational institutions that are educating people with the skills you need? How do you connect with them and find the next generation of talent? Where else does “your” talent congregate?

• And of course, there are lots of opportunities for startups: For example, rethinking recruitment, improving diversity, helping companies manage flexible working processes, r/educating people for future skills requirements, improving communication and collaboration tools… What are you thinking about?